7YearAssetClassRealReturnForecasts*

AsofMay31,2015

STOCKS

8%

BONDS

OTHER

6%

AnnualRealReturnOver7Years

4.8%
4%

6.5%Longterm
HistoricalU.S.
EquityReturn

3.0%
1.9%

2%
0.2%
0%

0.2%

0.7%
2%

1.1%

1.3%
2.3%

4%

3.0%

0.5%

3.2%

6%
U.S.
Large

U.S.
Small

U.S.High
Quality

Intl
Large

Intl
Small

Emerging

U.S.
Bonds

Intl
Bonds
Hedged

Emerging
U.S.
Debt
Inflation
Linked
Bonds

U.S.
Cash

Timber

Source:GMO
*ThechartrepresentsrealreturnforecastsforseveralassetclassesandnotforanyGMOfundorstrategy.TheseforecastsareforwardlookingstatementsbaseduponthereasonablebeliefsofGMOand
arenotaguaranteeoffutureperformance.Forwardlookingstatementsspeakonlyasofthedatetheyaremade,andGMOassumesnodutytoanddoesnotundertaketoupdateforwardlooking
statements.Forwardlookingstatementsaresubjecttonumerousassumptions,risks,anduncertainties,whichchangeovertime.Actualresultsmaydiffermateriallyfromthoseanticipatedinforward
lookingstatements.U.S.inflationisassumedtomeanreverttolongterminflationof2.2%over15years.
Proprietaryinformation notfordistribution.Copyright2015byGMOLLC.Allrightsreserved.
7yrForecasts